China's state-owned chemicals inch toward megamerger

Sinochem and ChemChina first combine agriculture units

A Sinochem factory: There has been speculation for years that China's two leading chemical makers could merge. (Photo courtesy of Sinochem)

SHUNSUKE TABETA, Nikkei staff writer

January 25, 2020 06:22 JST

BEIJING -- Sinochem Group and ChemChina are taking steps toward forming a single mega-sized, state-owned company with over $150 billion in annual sales, following up on their decision this month to integrate agrochemical businesses.

Publicly listed subsidiaries of both groups said Thursday that they received a letter saying Sinochem and ChemChina are "planning for a strategic restructuring." No further details were provided.